The Government of Botswana and De Beers Group have formalized a strategic partnership with a 10-year Sales Agreement and a 25-year extension of Mining Licences. This collaboration aims to stabilize the diamond market, enhance economic development, and promote local engagement within the industry. Significant investments and initiatives are also planned to bolster Botswana’s diamond industry, ensuring sustainable growth and community benefits.
The Republic of Botswana and De Beers Group have solidified a long-term partnership, marking a significant milestone for both parties. Following negotiations that concluded on February 3, 2025, they have established a 10-year Sales Agreement, extendable by an additional five years, alongside a 25-year extension of Mining Licences for the Debswana joint venture, which shares a 50:50 ownership.
Botswana’s Minister of Minerals and Energy, Honourable Bogolo Joy Kenewendo, expressed pride in this landmark agreement which aims to stabilize the diamond market and drive sustainable economic development. She emphasized the intention to rebuild market confidence and promote collaboration between the government and De Beers for the benefit of Botswana’s citizens.
Al Cook, CEO of De Beers Group, stated that the agreements represent groundbreaking progress in their long-standing partnership, often regarded as the world’s most significant public-private collaboration. He underscored the commitment to the Diamonds for Development Fund, which aims to enhance opportunities for the people of Botswana.
Key components of the agreement include:
1. A 25-year extension of the Debswana mining licences, allowing continued extraction beyond 2029.
2. A new 10-year Sales Agreement, stipulating that Okavango Diamond Company will manage 30% of rough diamond sales initially, with De Beers handling 70%. This will then adjust to 40% and 60% respectively over five years.
3. Development initiatives, including the Diamonds for Development Fund with an initial investment of BWP 1 billion (approximately $75 million) to stimulate economic growth and job creation in Botswana.
4. Investments to enhance local diamond processing and manufacturing capacity, including vocational training and a grading laboratory.
5. A collaborative marketing strategy to boost diamond demand while maintaining ethical standards and enhancing consumer trust in the market.
Ultimately, this partnership positions Botswana to maximize the economic benefits of its diamond resources while ensuring their responsible management for future generations. De Beers Group, with over 135 years of experience, remains steadfast in its commitment to sustainable practices and community development in the diamond sector.
In conclusion, the formal agreements between the Government of Botswana and De Beers Group mark a transformative step forward for the Botswana diamond industry. The long-term partnership is designed to create significant economic opportunities and foster sustainable growth. By extending the mining licences and implementing comprehensive development initiatives, both parties are set to enhance Botswana’s standing in the global diamond market while benefiting its citizens significantly.
Original Source: www.debeersgroup.com
